8 Ways Community Engagement Strategies Can Drive Business Returns

By Phil Preston

Community engagement strategies are becoming more sophisticated and increasingly being used to drive financial returns. Knowing where to start can be tricky, so I’ve outlined eight entry points that you can use to kickstart your strategy process:

1. Purpose: Re-examine your mission and express it in terms of societal benefit

An Australian insurer expresses its purpose as “to help people manage risk and recover from the hardship of unexpected loss," which is a powerful way of thinking and more meaningful than “to be the outstanding competitor in our chosen markets…” Clarity of purpose provides a platform for new opportunities and builds resilience into the business model.

2. Positioning: Integrate your unique assets and strengths into your strategies

A local property developer includes social assets, such as schools, in its new residential releases. It has developed insight and understands how customers value these features. Learning how to identify and develop your assets, such as intellectual property, is the key.

3. Products: Harness social trends for product and market development

The aging membership base of a motoring organization led to the development of an online tool to help members maintain or improve their quality of life. It helps them cut through an overload of information in areas such as aged care advice, travel and volunteering opportunities. Tapping into societal trends assists product innovation.

4. Productivity: Identify social factors constraining your business

Chilean fruit exporter, Subsole, provides better access to healthcare for seasonal workers via mobile clinics and receives a 2.5x return on investment . Examining social factors in your workforce and supply chain can pay off.

5. Problems: A new lens for addressing business problems

A battery retailer engaged local schools and rolled out a household battery recycling program to help differentiate itself from competitors. It created a new channel to market, improved the value proposition for its customers and led to a dramatic increase in foot-traffic and sales growth. Applying a community or social lens can lead to business model and performance improvements.

6. Programs: Increase your return on existing or new community programs

I recently helped a local steel company create an innovation challenge for its emerging leaders. They are shoring up funds for two local charities and helping them find a more sustainable business model. It provides development opportunities that they wouldn't normally get in their workplace.

7. Performers: Help your high performers stay with you for longer

"James" was made a partner at his law firm, only to quit the following day to pursue his passion for a social cause. This risk could be mitigated by helping time-poor high performers make a difference in the world in the context of work demands. Instead of sending them on more ‘training,' the return on investment in personal support or coaching may be attractive.

8. People: Increase employee engagement for internal productivity

Determine whether there is a causal link between your corporate volunteering programs and employee engagement levels. Some fine tuning can make a world of difference. Companies such as IBM, Time Warner Cable and National Australia Bank offer paid volunteering leave and encourage skilled-based programs and strive to improve engagement outcomes.

The benefits of community engagement strategies haven't always been properly recognized. To start your own explorations, focus on the two or three approaches listed here that are most relevant to your present circumstances. Start collecting and facilitating views from employees and other stakeholders, with the ultimate aim of improving society and the returns to your business.

Which of these approaches provides the greatest opportunity for you?

Image credit: timlewisnm, Flickr

Phil Preston helps businesses devise community engagement strategies. He is based in Sydney, Australia, and can be contacted via phil@philpreston.co or followed on Twitter (@PhilPrestonTwit)